CFOs should ask themselves what's more important, the liquidity or the margin?


Nedbank CIB reveals CFOs need to take a more holistic view of longer-based tender facilities.

On 17 September, CFO South Africa will host an interactive webinar, in partnership with Nedbank CIB, that looks at liquidity management. In this webinar, Nedbank CIB Working Capital and Liquidity specialists Belinda Munger and Gary Marais will explain why a sharp focus on managing cashflow is making the best companies successful despite the current headwinds. 

“Companies, CFOs, treasures and financial managers should be focused on their banking requirements with a specific slant towards how they’re managing their liquidity and ensuring that they’re able to meet the various commitments they have,” says Gary. 

He adds one of the things that should be most top of mind for any CFO – even more so in the current crisis – is to ensure that they can keep their business running efficiently. 

“There are two key themes that we’ve seen happen: one, everyone scrambling for liquidity but, two, not really wanting to pay the higher costs associated with such,” Belinda says, adding that CFOs should ask themselves what’s more important, the availability of liquidity or the cost?  

She explains that, what Nedbank CIB has seen is that clients are reconsidering their normal demand facilities and looking to extend them out into tenor-based committed facilities. “When times are good, clients don’t want to pay the higher commitment fee - it’s like having insurance, you don’t want to pay it, but the moment things get tough, you need it” 

Gary and Belinda will guide you through a range of practical solutions in order to help you improve the financial health and sustainability of your business and that of your entire value chain.

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